Hawaii ~ Sales and Use Tax: Senate Passes SST Conformity Legislation

Legislation passed by the Hawaii Senate would conform Hawaii general excise tax laws with the provisions of the Streamlined Sales and Use Tax (SST) Agreement, generally effective if and when the state becomes a party to the SST Agreement.

To achieve the required single state tax rate for the general excise tax, the legislation would:

— move the 0.5% tax rate for wholesale transactions to a new chapter;

— add a new chapter on the taxation of imports of property, services, and contracting;

— move the 0.15% tax on insurance producers to a new chapter; and

— eliminate the tax on businesses owned by disabled persons.

The legislation would also provide for destination-based sourcing and amnesty.

The legislation is similar to the legislation that was introduced in the Hawaii Senate on January 20, 2012, as previously reported. (TAXDAY, 2012/01/24, S.5)

S.B. 2226, as passed by the Hawaii Senate on March 6, 2012

AUTHOR

Wolters Kluwer Tax and Accounting

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